Research On Strategy Of Overall Cost Leadership For Jiangsu Textile Industry Under The Background Of Cost Rising

As a classic labor-intensive industry, textile industry has made a great progress for exporting, solving employment and promoting the economic development in our country. At present, the labor-intensive industry in China has to face the problem of a series of cost rising, which challenges the strategy of overall cost leadership used by China's companies.This article first summarizes the research on overall cost leadership (OCL) strategy, it is advised that the OCL strategy plays an important role in increasing market, build up the competitiveness for the company, also the researchers pointed out that OCL strategy doesn't stand for the lowest cost or getting rid of innovation, also with the great achievement of electronics and information, one company could choose the OCL strategy or differentiation according to its realities. Then the history and status quo is put forward, which point outs that Jiangsu's textile industry get a rapid development for using the OCL strategy relying on the cost priority in China. But now the cost is rising, which declined the profits of the textile industry and put off its development. Also the Jiangsu textile industry has to face the trade barriers from the developed countries and the low cost challenges from the developing countries. So Jiangsu textile companies has to pay more attention to the enterprise strategies. After the SWOT analysis for Jiangsu textile industry, some advises are put forward from two aspects in the end: state and the company. It is advised that the states should make good channel off and good environment for the textile industry. For the companies, they should make the proper strategies according to their realities.